Apple's stock is the one for 'the next decade,' former retail head Ron Johnson declares

AppleInsiderAppleInsider
Posted:
in AAPL Investors edited January 2019
Apple's original retail head Ron Johnson urged investors to buy the company's stock on Wednesday, calling it a good long-term bet, and arguing that iPhone sales will revive during the next cycle.

Ron Johnson


"I can't imagine a better buy for your portfolio for the next decade," Johnson told CNBC. Now the CEO of tech vendor Enjoy, he said that he still owns Apple stock and is going "long" on the company.

The executive's remarks come amid deep investor concerns, given Apple's Jan. 2 announcement that December-quarter revenues would fall $5 billion short of guidance. CEO Tim Cook blamed the issue mostly on weak Chinese iPhone sales, but also on factors like "foreign exchange headwinds," "economic weakness in some emerging markets," and 2018 battery discounts meant to apologize for throttling iPhone performance without consent.

Earlier this month Cook revealed that about 11 million batteries were swapped during the repair program -- as much as 11 times what the company had planned for. Critics have pointed to his comments as evidence Apple depends on degrading batteries to keep up sales.

Johnson suggested that people who bought replacement batteries will be back once this year's new iPhones are released.

"Those 10 million didn't upgrade their phone," he said. "Next year, they'll be ready, right? Apple's a great buy."
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Comments

  • Reply 1 of 25
    JWSCJWSC Posts: 1,203member
    That last bit is a compelling argument.  I deferred last year because of the battery replacement program.  Very likely I’ll be upgrading this fall.
    schlackchasmbshank
  • Reply 2 of 25
    anantksundaramanantksundaram Posts: 20,404member
    He’s totally right about that.

    AAPL is a no-brainer for the long haul. 
    dedgeckoyojimbo007StrangeDayschasmbaconstangbshank
  • Reply 3 of 25
    lennlenn Posts: 36member
    Sounds like someone that "might" own a lot of Apple stock. lol
  • Reply 4 of 25
    SpamSandwichSpamSandwich Posts: 33,407member
    “I’m sorry, Ron but we’re still not going to hire you back.” —Tim
    sportyguy209
  • Reply 5 of 25
    dedgeckodedgecko Posts: 169member
    Whether customers buy a new / replacement iphone is erroneous. The question is what will — not just tease, tempt, make, whatever— but actually permanently remove an Apple customer from Apple’s ecosystem for the rest of their life. That’s the only thing that Apple needs to worry about. Do they make compelling products that welcome you into the fold, offer services, accessories, and subsequent replacements sticky enough that you dont want to throw their ass in an oven and cook em. (Loose reference to Hansel and Gretel)?

    Apple’s got profits leaking out of them that go into new projects, investors, debtors, and lobbyists and yet they still build a warchest. It would take a massive collection of screwups to force Apple off-course. 
    schlackchasm
  • Reply 6 of 25
    JayVeeJayVee Posts: 26member
    Every quarter we hear about “currency headwinds”, because Apple can complain about poor FX purchasing power for components, or poor FX conditions for selling their products internationally. No matter whether the dollar goes up or down there is always a negative way to spin it.
  • Reply 7 of 25
    MacProMacPro Posts: 19,727member
    I'm backing the same pony.
  • Reply 8 of 25
    bugsnwbugsnw Posts: 717member
    It might be painful for a bit but maybe there's an opportunity for Apple to go for a little market share via lower prices/tighter margins. I remember Jobs alluding to this concept when he was proud that Apple's pricing was newly competitive. I remember being pleasantly shocked at that first iPad's price.

    People are perceiving Apple as gouging them and charging too high a price. Or I should say many people are in that camp. I bet this next crop of products offer a more compelling value. It will be a move in the right direction.
  • Reply 9 of 25
    eskariceskaric Posts: 6member
    I replaced batteries on 2 6s in december as I recycle those phones. But I also bought 4 new XRs as part of a refresh as they provided compelling value to upgrade. Couldn't be happier. Someone is getting those 6s for free.
    chasmbshank
  • Reply 10 of 25
    yojimbo007yojimbo007 Posts: 1,165member
    Could not agree with him more. These discounts offer incredible opportunity for making some seriouse gains in the long haul. Ofcourse if one is a beliver in the company.....I am !.
    bshank
  • Reply 11 of 25
    lennlenn Posts: 36member
    He’s totally right about that.

    AAPL is a no-brainer for the long haul. 
    Maybe if they get rid of Cook and Schiller. If they do that then I see a bright future for Apple. The only reason Apple has dominated the phone market is because all that BS about Chinese phone makers including Huawei being a national security risk. That has more too do with staving off competition for Apple that anything else. If Huawei was allowed to sell phones in the US Apple would be forced to lower their prices to compete and Cook is all about giant profit margins no matter what the cost to consumers.
  • Reply 12 of 25
    schlackschlack Posts: 720member
    Apple now sells premium iPads, Watches, AirPods, HomePods, etc...those things eat into my electronics spending for the year, so that even if my total spending on Apple products stays constant, I'll upgrade anyone of those items less frequently because I'm rotating my update cycles across multiple devices. I'm sure many people are doing the same.
  • Reply 13 of 25
    macxpressmacxpress Posts: 5,808member
    lenn said:
    He’s totally right about that.

    AAPL is a no-brainer for the long haul. 
    Maybe if they get rid of Cook and Schiller. If they do that then I see a bright future for Apple. The only reason Apple has dominated the phone market is because all that BS about Chinese phone makers including Huawei being a national security risk. That has more too do with staving off competition for Apple that anything else. If Huawei was allowed to sell phones in the US Apple would be forced to lower their prices to compete and Cook is all about giant profit margins no matter what the cost to consumers.
    Oh look an Armchair Executive/Analyst with some BS comment with nothing to back it up!
    StrangeDaystmaybaconstangbshank
  • Reply 14 of 25
    NY1822NY1822 Posts: 621member
    I held off this year after having my battery replaced. I will be one of those 10 million people upgrading in September.
    bshank
  • Reply 15 of 25
    DAalsethDAalseth Posts: 2,783member
    NY1822 said:
    I held off this year after having my battery replaced. I will be one of those 10 million people upgrading in September.
    We replaced the battery in my wife's 6 last November. It looks like my SE is gutting close. Likely by summer I'll replace its battery. Then we're likely good for another couple or three years.
  • Reply 16 of 25
    carnegiecarnegie Posts: 1,078member
    I'm not suggesting that I generally disagree with his assessment.

    But I wonder how many shares of AAPL Mr. Johnson still owns out of the 1.63 million (split-adjusted) shares he owned when he left Apple in 2011.
  • Reply 17 of 25
    StrangeDaysStrangeDays Posts: 12,876member
    lenn said:
    He’s totally right about that.

    AAPL is a no-brainer for the long haul. 
    Maybe if they get rid of Cook and Schiller. If they do that then I see a bright future for Apple. The only reason Apple has dominated the phone market is because all that BS about Chinese phone makers including Huawei being a national security risk. That has more too do with staving off competition for Apple that anything else. If Huawei was allowed to sell phones in the US Apple would be forced to lower their prices to compete and Cook is all about giant profit margins no matter what the cost to consumers.
    If the govt is trying to protect Apple from foreign competition, then how come no wall was built around Samsung? Hmm yeah because your conspiracy theory is bullshit. 

    Firing Cook would be completely idiotic. Under Cook Apple has had historic growth and is the most successful and profitable public company in history, with the highest consumer satisfaction ratings, in multiple categories. People throw money at Apple. I pray that you are not in charge of anyone’s capital. 
    edited January 2019 fastasleepbshank
  • Reply 18 of 25
    genovellegenovelle Posts: 1,480member
    JayVee said:
    Every quarter we hear about “currency headwinds”, because Apple can complain about poor FX purchasing power for components, or poor FX conditions for selling their products internationally. No matter whether the dollar goes up or down there is always a negative way to spin it.
    You do realize that when you sell phones in other markets currency changes effects those markets in different way. They factor in currency exchange rates based on estimates and history but when there is great uncertainty placed on the market by any leaders that can go sideways in a hurry. 

  • Reply 19 of 25
    anantksundaramanantksundaram Posts: 20,404member
    lenn said:
    He’s totally right about that.

    AAPL is a no-brainer for the long haul. 
    Maybe if they get rid of Cook and Schiller. If they do that then I see a bright future for Apple. The only reason Apple has dominated the phone market is because all that BS about Chinese phone makers including Huawei being a national security risk. That has more too do with staving off competition for Apple that anything else. If Huawei was allowed to sell phones in the US Apple would be forced to lower their prices to compete and Cook is all about giant profit margins no matter what the cost to consumers.
    I guess the phrase “IP theft” doesn’t mean a whole lot to folks like you. 

    Pathetic. 
    bshankdocno42
  • Reply 20 of 25
    chasmchasm Posts: 3,291member
    Broadly I think Ron's correct. There is very likely to be a big wave of upgraders from the 5s/6/6s/7 in October (and over the course of 2020), on top of whatever new features Apple adds to the next Shiny Things. There's also likely to be a big wave of Mac upgraders over the next year or so. The current economic troubles facing the US are going to be with us for quite a while, but as he noted ... AAPL has always been a "long term" stock, and nothing on that front has really changed.
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